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Selling Unique BC Properties

Fall Buying Tips and Stats!!!

Posted by Brad Fry on September 10, 2021
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Warning! ;) This is a digitally automated transcript of the show so there will be mistakes throughout - including the spelling of Michele's name!

 

Curtis Pope: 

Saturday morning it's a Saturday and a long weekend. Not much better. It's time to talk real estate with the one and only Michele Cummins. How you doing, Michele?

Michele Cummins - PREC: 

I'm doing great. Curtis, how are you doing?

Curtis Pope: 

I'm doing? I'm doing well. It's a long weekend we get to relax a little bit and then everything goes you know, sideways come Tuesday.

Michele Cummins - PREC: 

Well, you get to have fun after a radio show and have some fun that here are some hot springs. So that'll be great.

Curtis Pope: 

That is true. I get to go, you know, do my usual emcee duties at bands on the beach, which is a great little show that I've been doing with the crew there. I mean, Todd Rashard is part of the organising and organizing people of it. And I've been there this will be well, it's technically year 11. But we're not really counting last year because it was a virtual show. So it's really the 10th year of it.

Michele Cummins - PREC: 

Yeah. Well, you know what, that will be a lot of fun because I think everyone is in need of some enjoyment, relaxation, some entertainment, and it's always a good and the artists are always fun. And it's a good time.

Curtis Pope: 

Yeah, I mean, it live music. Everybody misses it. Not everybody lives with a musician. Like you get live music anytime you want.

Michele Cummins - PREC: 

Yes, I do. And so do you.

Curtis Pope: 

Yes, I do with my son. And then you know, I like to, you know, bang around on my drums a little bit, too. So, uh, you

Michele Cummins - PREC: 

know what? I remember watching last year, because wasn't that when Dylan was playing? And then you were playing the would you call it the drum? You said on?

Curtis Pope: 

Yeah, well, there's a few different names for those. What's the proper name for it again? It's like

Michele Cummins - PREC: 

a bum drum. Well,

Curtis Pope: 

that is not a bad name for actually yeah, that works. I mean, a drum box and then there's the proper like, it's like a like, almost like I'm drawing a blank.

Michele Cummins - PREC: 

Well, it's fun to listen to and it was enjoyable. And this year, he's not playing his new axe that he got because he's working all weekend.

Curtis Pope: 

Well, you know, the kid has like six guitars. Now. He needs to be like pay for pedals. New guitars. Now he wants to get a bass.

Michele Cummins - PREC: 

Okay, he does need a bass.

Curtis Pope: 

Yeah. And of course, what does he want? He wants the Paul McCartney bass

Michele Cummins - PREC: 

course. It's really the the one that you should get if you're going to get one.

Curtis Pope: 

That's the one and you must have one of those kicking around now, if not two or three of them.

Michele Cummins - PREC: 

Have one from the 60s and then a newer Les Paul. I think it's the Japanese made one and yes. Yes. A few.

Curtis Pope: 

Classic Paul McCartney bass, the small little bass.

Michele Cummins - PREC: 

Yeah, it's actually a sound so good. You know, there's a different sound when people go Oh, I need more. guitars. You know, Richard, same as the saying that to me. It's true. The old sound

Curtis Pope: 

including a Paisley guitar, even though he already had a Paisley guitar.

Michele Cummins - PREC: 

Oh, I know. I can't believe he needed the blue one when we already own a painful and

Curtis Pope: 

that's still a point of contention all these months later. It is.

Michele Cummins - PREC: 

Oh, it's fun, though. I yeah. So he's working all weekend I am to Labor Day weekend is you know, there's no rest. For the blast.

Curtis Pope: 

I always say I was gonna say the wicked but Okay, let's go with the blast. Yeah, I

Michele Cummins - PREC: 

like that one. Okay, so our show this weekend is the first segment is about seven things the full housing market could have in store for buyers in DC, you know, we're enjoying the summer, as we get the last couple of weeks, actually, we're gonna probably have a really nice fall. I just have a gut feeling about it. But you know, the end of September, you know, fall comes. And Starbucks and coffee shops are already starting with their fall drinks. So it's around the corner. So I thought that would be great. And then we have this stat show,

Curtis Pope: 

I was thinking it would be a stat show. It's a new month.

Michele Cummins - PREC: 

It's gonna be fab. It's very exciting. What's happening. And yes, we're going to talk about that on the on the second segment. So let actually and I wanted to just throw in some news. There's actually a lot of news happening and we don't have enough time to talk about on this show right now. So if y'all want to get onto my Facebook business page, I try to really keep you updated on everything there. So there's a lot of changes one thing I just want to let everyone know that lumber prices have come down 74% on the last stat I've I've looked at since they went up last May ish or whatnot. So that's not a complete the same price as it was over a year ago. But still, it's really really good compared to what it was in the fact that one of the major causes of the reduction of prices is because builders and people stopped buying they actually decided No, I'm gonna wait I'm gonna wait a lot of builders have done that and and while the production the lumber mills, they've been actually getting more supply thinking oh my gosh, you know lumber is at an all time, high in price. So let's stock up as it's going up before it goes up too much well they have now overstocked when compared to people buying less. So now that's one of the causes of the prices coming down. So that's some good news. And so talking let's get into what's happening in the market. This we're kind of like talking about what's happening in the fall market before we get to our August stats, which is is a flip it'll be interesting to see the August stats to compare it with these seven things to keep in mind. So these these housing market has been, it has been on quite the run over the past 18 months. The pandemic and monetary policies that were influenced by this whole economic uncertainty pushed home prices up significantly, as demand continues to outpace supply and most of the primary market drivers remain in place. And though the summer months have been relatively quiet compared to the beginning of 2021 because really it's been crazy hot summer real estate wise, but actually, it has been quieter since the beginning of the year but the federal housing market could have more movement in store for buyers in DC and I've been hearing this from all my colleagues all across the globe and locally. We are all expecting a very busy hot fall actually. So the first one is a hot presale market so B C's pre construction market should continue to be busy this fall with buyers looking to lock in the low interest rates with a relatively small initial deposit in city centers and the suburbs alike interest in new builds has surged in recent months. And I mentioned before on this show about the some new projects in Langley where the sky trains coming out and some nice pocketed areas where new pre construction is coming. And there are many reasons why new developments in BC are becoming more attractive, especially in regards to their flexibility. In most cases presale properties can take years to build this good first time buyers opportunity to save more of the downpayment and current homeowners the time to renovate or fix up their existing home for sale. With many homeowners being really wary about selling their homes during the pandemic investing in a prebuilt has been an attractive option here in BC. Second point of our seven points demand should continue to outpace supply because those certainly there's a lot of talk in the last few months has been about the cooling of Canada's real estate market. A lack of supply has been one of the main drivers of the declining month over month sales numbers, which you'll hear in the second segment. a decline in new listings on the national level has left buyers with limited options to choose from which could drive prices higher as more buyers into the market. So the Canada Mortgage and Housing Corporation has stated that the annual pace of housing starts slowed in July another indicator that supply may not be able to keep up with demand in the coming months. And the third point is low interest rates will continue to fuel demand. You will not see many people calling for a market correction as long as interest rates remain where they are and the Bank of Canada has indicated that a rate hike is not coming in this year. When the cost of borrowing remains low activity does hit typically remains really high. And as we head into the fall and winter months, low interest rates should continue to drive buyers to search for homes in BC. The fourth point competition from expatriates so in the CBR ees global living report last year, and we did talk about this, I believe really earlier on this year or it was late last year, but Hong Kong ranked as the most expensive residential market globally, and the third most expensive city for renters, Vancouver is a top destination of choice for the roughly 300,000 Canadian passport holders who live in Hong Kong and new buyers from the part of the world can be expected in the months to come. And I talked about this about how China has does see Canada as a really hot seats to put their money in and to come to especially this year 2021 Hong Kong the center real estate market gives Canadian sellers in Hong Kong enough capital to enter B C's hot market which could drive prices in the province even higher. So this new wave of renters and buyers can enter the market. So last week we talked about renters and build a current immigration target set by the Government of Canada aren't yet being fulfilled because of the year there's a real there's reason to believe that numbers could begin to increase so Canada has set a goal of welcoming 400,000 immigrants per year through 2023 or 1.2 million people in total. new immigrants often settle in major cities like Vancouver, the outskirts, which would have a ripple effect on VCs real estate market. New renters need higher rents and a busier rental market, leading to more investors purchasing condos in city centers in BC average rents in Canada have been rising for three consecutive months in a row as we mentioned last week, and tourism workers, hospitality workers and students will also have an impact on the rental market. And I have seen that lately as they return to city centers to be close to work in school. So together these conditions should attract more investors as their scientists stabilization in the rental market. Six quality offers at the beginning of 2021. This year, it was common to see single family detached homes for sale receive offers numbering and the double digit. In some cases with no subjects. Most cases, I would say things are changed a little since then. And but there's still that buying frenzy. I've done so many multiple offers this last week still. So it's still happening. So quality offers literally I just signed two, subject free, great offer on one of my listings yesterday that came together as no subjects. So it's still happening. Seven optimism should remain high. So low interest rates, low inventory and high demand with the story of VCs real estate market, Sue out the pandemic and none of those conditions have changed going into the fall. So that is what's happening and the Bank of Canada promising to lower lower interest rates. I just perceive an amazing fall market happening. So get ready. You know, pull up your cowboy boots and get ready for the fall market.

Curtis Pope: 

Sounds like a plan. Yeah. All right. Well, that's very cool. That's a lot of information out for people. If they want more information from you, where can they go?

Michele Cummins - PREC: 

Even more information than that they can go to Michele Cummins,

Curtis Pope: 

- PREC. And with that, we'll take a real quick break we'll be back with more right after this.

Unknown: 

She

Curtis Pope: 

with the Coventry Real Estate Group show with local realtor superstar Michelle Cummins and myself Curtis Pope. Now, before we go any further I have to ask, did you see the trailer for Yellowstone season for Michelle?

Michele Cummins - PREC: 

No, I haven't yet is a great,

Curtis Pope: 

it looks like it's gonna be a pretty intense season November 7. I can't wait. I'm so excited. And it kicks off with a two hour premiere because it got a lot to tie up after the end of last season.

Michele Cummins - PREC: 

Oh, that's good to know. Oh, it's gonna be so fun.

Curtis Pope: 

Yeah. Yeah. And of course, I don't think you are aware there's a there's like a prequel coming out like an origin story.

Michele Cummins - PREC: 

No, I

Curtis Pope: 

was not. It's called 1883. And it's gonna start Sam Elliot and Tim McGraw and Faith Hill.

Michele Cummins - PREC: 

Oh my gosh. Are you kidding me? Yeah. That it's like so okay. Faith Hill, Tim McGraw and Sam. Elliott.

Curtis Pope: 

This is so amazing. Yeah. Tim and faith are playing Kevin Costner. JOHN duttons I guess great grandparents. And it's about moving from Texas to Montana where they, you know, get the Yellowstone ranch.

Michele Cummins - PREC: 

So cool. Oh my gosh. 1883.

Curtis Pope: 

Yeah, so it's gonna be more of a Western like a full on Western, not a Western crime syndicate. Everybody in Montana is evil show like Yellowstone?

Michele Cummins - PREC: 

Is this gonna be like a TV series or like a What do they call the shorts?

Curtis Pope: 

No, it's gonna be a it's gonna be a series. Yeah. Yeah, and I know you don't write that down from anybody. That's, you know, I'm always a little after watching that show. I'm a little leery of you. Cuz it seems like everybody in Montana is just a little bit evil.

Michele Cummins - PREC: 

Well, you know, we all have all emotions in us all.

Curtis Pope: 

But you live in a different part of Montana. So it's safe.

Michele Cummins - PREC: 

Acting. That's what I learned. We all have the capabilities of doing everything really. Montana is fantastic. It really is. I mean, why would with Yellowstone I mean, it's that popular because people must love Montana. A family must love Montanans.

Curtis Pope: 

I'm sure I'm gonna go with that, too. It's been a long time. I've been in Montana, but I do remember being very beautiful.

Michele Cummins - PREC: 

Oh, it is. Oh, I miss it.

Curtis Pope: 

Oh, now I'm gonna make you want to go on a trip?

Michele Cummins - PREC: 

Yes. Yeah, I want to take my bike, motorcycle and go.

Curtis Pope: 

No, that would be a cool ride for sure.

Michele Cummins - PREC: 

But how can I bring my metal detector on my bike? With me? I gotta figure that out.

Curtis Pope: 

Well, then Richard is gonna have to follow along in one of the cars. That's as simple as that.

Michele Cummins - PREC: 

Yeah, I think you're right. Enough Trump in the generally I'm sure that'll

Curtis Pope: 

There you go. Perfect. All right. Well, we I know it's the stats show and and how much you love to do the stats show. So I don't want to get in the way with any more Yellowstone talk. So let's get to the stats. Okay, let's

Michele Cummins - PREC: 

get serious now. So, this release just came out a couple days ago, from of course, our wonderful Fraser Valley real estate board. And the headline is a market of extremes near record sales in August combined with lowest supply in four decades. Demand for Fraser Valley real estate remained elevated in August reaching the second highest sales ever for the month against a backdrop of decreasing supply. So the board process in August an increase of 4% of the listings, sorry of sales compared to July and a 2.4% increase compared to the same month last year, so sales remained unusually high for the month, second only to August of 2005. And Larry Anderson, our current president of the board says homebuyers are facing one of the worst supply shortages in the Fraser Valley history. Our sales are over 30% above normal while our housing stock is at levels last seen in the early 80s. And so that is crazy low inventory to put our supply and demand situation in perspective. For every 100 townhouses on the market in August, Fraser Valley realtors sold 94 of the 100. The single family detached and condo markets also remained in strong seller's markets territory. So persistent demand and lack of supply continues to put upward pressure on home prices. And in August, the board received a decrease of 36.3% of listings compared to last year and a decrease of 13.3% compared to July this year. The month ended with total active inventory sitting at 16.8% decrease compared to July and almost 45% fewer than August of last year. So across the Fraser Valley in August, the average number of days it took to sell a single family detached home was 29 days and a townhouse was 19 days, and a condo took on average 29 days to sell. Now benchmark prices for single family homes across the board for the whole Fraser Valley at $1,336,800. And that's an increase of 1.3% compared to July and an increase of 31.1%. Compared to August last year. townhouses are at 697,500 and that is an increase of 1.3% compared to July and an increase of 23.7% compared to August of last year and condos are at 498,800 and that is an increase of 1% compared to last month, an increase of 14.1% compared to August of last year. And now going municipality by municipality starting with Abbotsford detached benchmark prices currently are at $1,152,700. And that's an increase of 35.6% from last year and an increase of 1.5% from July townhouses in Abbotsford are 598,300. That's an increase of 28.6% from last year and 1.9% increase from monthly for condos are at 366,000 and that is an increase of 18.7% from last year and a point 6% increase from the month before missions benchmark price for detached homes are at 955,700 an increase of 37.1% from last year and an increase of 2.8% from the month before and townhouses are at 604,800 an increase of 29.9% from last year and an increase of 1.1% from the month before condos at 431,000 an increase of 23.8% from last year an increase of 1.4% from the month before white rocks and salsbury area to is been for prices for detached homes at 1,713,008 $800 that's an increase of 22.8% from last year and an increase of 1.4% from the month before, townhouses are at 822,400. And that's an increase of 22.7%. from last year and surprise increase of 1.6%. from the month before condos at $575,200. And increase overall from last year of 17.6%. And from the month before an increase of 2.8%. Now, mainly when I first moved to my came to Canada benchmark prices for detached homes are at $1,381,800. And that's an increase of 29.8% from last year and an increase of point 3% from the month before, and townhouses are at $723,100. And that's an increase of 25.5% from last year and an increase of 2.4% in the month before and condos are at 473,700, an increase of 18.2% from last year, and an increase of point 3% from the month before. And then delta benchmark deeper detached home prices are at $1,208,700, an increase of 29.2% from last year and an increase of 1.4% from July. townhouses are at 680,400. And that's an increase of 17.9% from last year and an increase of 1.1% from the month before and condos at 401,500 and increase a 3.8% from last year. And down the first time we see a down point 2% not much but still a little bit down. And then 303 benchmark detached prices are at 1,405,000. And that's an increase of 32.1% from last year and an increase of 1.5%. from the month before townhouses $707,800 an increase of 22.4% from last year and point 9% from the month before and condos at 486,700 and increase of 12.5% from last year and an increase of point 2% from the month before. And then I think we're really running out of time here curious if I haven't talked fast enough. I've got some new listings and coming soon listings. I'm just going to shout them out. Okay.

Curtis Pope: 

Okay, let's hear it.

Michele Cummins - PREC: 

Stay prepared. Okay, so I've got this amazing five acre property that is completely private, down an amazing street with parks all around and trails all around. It's off saundra Street in mission like to the north area mission. Beautiful place brand new rancher. It's got three bedrooms, two bathrooms, the Masters on the opposite side of the house and the other bedrooms. It's got this amazing, huge triple workshop. It is really gorgeous. I can't say that I am going to have an open house there. I'm going to have a realtor exclusive event there. I'm going to do a virtual tour walkthrough of it there. So keep an eye on my Facebook page because it's like I said gorgeous. It's a little over 2100 square feet. The property is subdividable and again, private, private private, huge workshop. Huge carport like it's just this great round about driveway. Beautiful and the other thing is you can actually put a carriage house there so you could another detached let's say garage that's actually attached by a breezeway maybe to the house and and period house on top. Great place okay and the next place I oh I should say price so that price is at 2,780,000 and then just hit the market too. But just yesterday is a 10 acre parcel and mission actually right a few houses are few properties down from cascade bold, so cascade Falls is one of the most beautiful falls around it's gorgeous in the summer gorgeous in the winter. This area up Sylvester road emission is gorgeous. And this one is huge. This is tons of outbuildings it's a little over 1900 square foot basement is your house with an unauthorized suite. So you've got that that sweet colada in law suite. But it has this gigantic deck that's been attached to this gigantic garage workshop. And it comes with a lot of bells and whistles. It's got like a barn to a chicken coop a greenhouse and there's a big deck off the master bedroom side as well with a hot tub and even ATV around this property and it's great. The price on that one is 1,650,000 and that's again just listed yesterday and then I've got a couple rules coming up that I want to mention one off diamond Avenue so the future of this area is is hot, the OCP for great area to invest in. I live and enjoy it right now. It's over 10,000 square foot lots fully flat and usable. four bedrooms, two bathrooms 2200 square feet. Got it an unauthorized sweet, so it's got a sweet as well. And that is coming next week. So stay tuned with the price and I've got a condo coming up off Curtin Ville road in Abbotsford, two bedroom, one bathroom, and it's almost 1000 square feet. And this place is going to be also listed next week. So keep an eye on price to that is a 55 plus building there. And I know I mean, it's really important to hear that coming soon. Because the listings are so low that somebody hears about it earlier. Hopefully they can get on top of it and get get in before others. So there you have it. Oh, and the quote of the week. Okay, the best views come after the hardest climb. And I don't know who that's from. But I do know it is so true. I tell people all the time is sometimes the hardest decisions in our lives are always the best ones that can make like we're so happy we make them but those are the heart the hardest ones. So it's the hardest time right but then you get the best views and the best results and you may live your best life that things happen when when you when you take some leaps in your life.

Curtis Pope: 

Absolutely. You don't want to just stick with the status quo. You want to aspire for a little more.

Michele Cummins - PREC: 

That's right. All right. Well, if

Curtis Pope: 

people want more information about what you do as a realtor, where can they go and join us again next week we will talk real estate in order to unlock your real estate potential on the show real estate is maximized. Thanks for listening

 

If you missed last weeks episode where Michele talks tax tips and first time home buyer tips, please go back and take a listen - it's well worth it!

 

Click Here to listen to the full Episode & Previous Episodes!